Ryanair has expressed disappointment with its recent business performance, leading to a significant drop in investor confidence. The airline’s stock has fallen by 17% following the release of its quarterly earnings report, which showed revenue at €3.6 billion ($4 billion), nearly the same as the previous year. However, profits have plummeted to €336 million, down nearly 50%.
CEO Michael O’Leary noted that although passenger traffic has increased by 10% to 55 million, success has come at a cost, stating, “Traffic growth is strong, but it’s only strong at a price.” He highlighted the need to continuously stimulate fares and bookings, citing disappointing performance and bookings as the peak travel months of July, August, and September approach.
Additionally, Ryanair is facing heightened labor costs and has pointed a finger at Boeing for ongoing delivery delays, a recurrent issue for O’Leary. Despite having remained supportive of Boeing after a recent incident with a 737 Max 9, he has long urged the company to improve its delivery reliability.
O’Leary remarked that customers seem to be facing more financial pressure compared to the earlier stages of the economic recovery following COVID-19. According to reports, years of inflation and stagnating economic growth in the European Union may be impacting consumer behavior. As a result, he indicated that operating fewer aircraft might benefit Ryanair in the long run.
He confirmed that the airline would have reduced capacity for the summer of 2025 compared to earlier schedules due to Boeing’s delays, with no capacity growth expected for at least two years. O’Leary concluded, “If the consumer is going to be under pressure for the next year or 18 months, that might not be the worst place to be.”